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Old 01-07-2013, 07:52 PM   #16
dirk digler dirk digler is offline
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Join Date: Jul 2003
Location: Clinton, MO
Casino cash: $6595
Quote:
Originally Posted by mlyonsd View Post
I'd say your original question is true, defaulting on our debt is a violation of the constitution.

Where you're wrong is if we reach the debt ceiling and it isn't raised, we won't necessarily go default. We have plenty of monthly federal revenue to pay our debts.

We won't have enough money to borrow further on things like unemployment benefits, food stamps, military spending, bridges to no where.

But we won't be in default.

It's sad you are tricked by the very people you champion.
Really?

Quote:
The federal government hit its legal borrowing limit of $16.394 trillion on Dec. 31, and has begun taking "extraordinary measures." The Bipartisan Policy Center's estimate indicates when the Treasury will only be able to pay bills with the daily revenue coming in.

Problem is, there likely would be less revenue coming in than has to be paid out for each of the days between Feb. 15 and March 15.

On Feb. 15, for instance, Treasury will take in an estimated $9 billion in revenue but is committed to pay out $52 billion.

The bills due that day include $30 billion in interest on the debt; $6.8 billion in IRS refunds; $3.5 billion in federal salaries and benefits; $2.7 billion in military active pay; $2.3 billion in Medicare and Medicaid payments; $1.5 billion to defense vendors; $1.1 billion in safety net spending, including for food stamps and unemployment benefits; and $4.4 billion in other spending.

On March 1, Treasury will take in an estimated $20 billion in revenue. But that won't be enough to cover the $25 billion in Social Security payments due that day, let alone the $58 billion in other bills.
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